Why Red Cat Holdings Shares Are Falling Sharply
Portfolio Pulse from Henry Khederian
Red Cat Holdings Inc (NASDAQ:RCAT) shares dropped 27.7% after announcing a public offering of 16 million shares at $0.50 each, totaling $8 million. The offering includes an underwriter option for an additional 2.4 million shares and is expected to close on December 11. The funds are intended for general corporate purposes. RCAT's 52-week range is $1.54 high and $0.54 low.
December 07, 2023 | 2:56 pm
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Red Cat Holdings' stock price fell sharply due to the pricing of its public stock offering at $0.50 per share, which is below the current trading price, resulting in dilution of existing shares.
The significant drop in Red Cat Holdings' stock price is likely due to the market's reaction to the dilutive effect of the public offering and the offering price being set below the current market price, which typically leads to downward pressure on the stock.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100